Andre Yoskowitz
17 Oct 2011 2:28
EMI Group, the fourth largest record label, is seeing underwhelming bids, say sources close to its owner Citigroup.
The bank was forced to take over the label this year after the former owner, private equity firm Terra Firma, could not pay back its debts.
Five months ago, the Warner Group (world's 3rd largest label) sold for $3.3 billion, giving Citi faith that they could command a similar price for the label which has 1.3 million songs including recordings by the Beatles, Coldplay and Katy Perry.
EMI has been up for sale since June, after Citi was forced to write down the label's debt by $3.5 billion.
For now, it appears the only bidders on EMI's recorded music division are other labels, with each bidding as high as $1.3 billion, well short of the $3.5 billion Citi hoped for. EMI's publishing unit has received bids as high as $2 billion.